The Common Market Eastern and Southern Africa (Comesa) Competition Commission (CCC) in April this year approved the acquisition of Carlsberg Malawi by Brasseries International Holdings Limited (BIH), the holding company of French registered Castel Group.
Among others, the two merging parties made an undertaking to ensure that the merged entity will not terminate any employment contract for a period of 24 months as a result of the merger.
However, CCC said in its determination that the termination of contract does not include voluntary retrenchment or voluntary separation arrangements, disciplinary measures, separation upon agreement with employees and voluntary early retirement offer.
The merging companies further made an undertaking to ensure independent operation of Carlsberg Malawi and Chibuku Products Limited which is a SABMiller subsidiary. SABMiller holds 20 percent shareholding interest in BIH and Castel Group owns 38 percent of SABMiller African business.
“BIH shall not share sensitive or confidential business information with SABMiller concerning its operations in Malawi which would lead to coordination of their behaviour in the Malawian market,” reads the determination signed by the commission’s chairperson Commissioner Mathews Chikankheni, its members Thabisile Langa and Chilufya Sampa.
Commenting on the decision, the local Competition and Fair Trading Commission (CFTC) executive director Charlotte WeziMalonda said her authority provided input into the CCC assessment.
The company bought 59.48 percent stake from Carlsberg Malawi last year while Press Corporation Limited remained a minority shareholder with 39.65 percent.